How this calculator works
Current yield compares one year of coupon income with the market price. Coupon frequency divides that annual cash income into instalments and does not change current yield. This focused measure needs no maturity date. Use the related yield-to-maturity calculator for redemption value and the timing of all future cash flows. Price, face value and coupons must use one currency.
Formula
Annual coupon = face value x annual coupon rate. Current yield = annual coupon/market price. Coupon per payment = annual coupon/payments per year.
Worked example
A $1,000 bond with a 5% coupon pays $50 annually. At $950 its current yield is 5.2632%, and two annual payments are $25 each. At $1,250 the same coupon yields 4%.
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Frequently asked questions
Does this include the gain at maturity?
No. Current yield measures coupon income only. A discount or premium also affects yield to maturity.
What price should I enter?
Use the quoted purchase price for this income comparison. Accrued interest, trading fees and taxes are excluded.
Can a zero-coupon bond have a return?
Yes, but its current yield is zero because it pays no coupon. Its redemption gain belongs in a maturity-based calculation.